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While the number of new cars sales across the whole of Australia has remained relatively stable at around a million per year for the last five years, the number of new car sales for Western Australia has plummeted by 22 percent over the same period.

This is obviously a direct reflection of the downturn in the WA economy.

I have also noticed an increasing number of cars up for sale on people's front lawns and even in car parks, and signs on the back windows of cars being driven around that are for sale.

Additionally, in the West Australian about three weeks ago, there was an item about how the second hand car yards are full to overflowing and how the number of second hand cars being shipped east has almost doubled in the last three years.

On the upside, if you are in the market for a replacement second hand car you should be able to negotiate a great deal. Certainly you should not be paying anything within about 20 percent of the pasted value. So if they have that car up for $15,000 you should be looking to get it off them for closer to $12,000.